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intermediate accounting questions




Question;1. Seventh Heaven takes tourists on helicopter tours of Hawaii. Each tourist buys a $150 ticket, the variable costs average $60 per person. Seventh Heaven has annual fixed costs of $702,000.a. How many tours must the company conduct in a month to break even?b. What is the amount of monthly sales (in $dollars) to break-even?b. Compute the sales revenue needed to produce a target net profit of $36,000 per month.2. Altered State University (ASU) is preparing its master budget for the upcoming academic year. Currently, 12,000 students are enrolled on campus, however, the admissions office is forecasting a 5% growth in the student body next year despite a tuition hike to $80 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials:? The average class has 30 students, and the typical student takes 15 credit hours each semester.? Each class is three credit hours.? Each faculty member teaches five classes during the academic year.a. What is the budgeted tuition revenue for the upcoming academic year?b. How many faculty members will be needed to teach classes in the upcoming year?3. Sammy Corp manufactures helmets. Sammy uses a standard costing system with the following standards:STANDARD Quantity PriceDirect Materials 1000 pounds $12 per lb.Direct Labor 2500 hours $20 per hourVariable OH ------- $30 per DLHa. The actual amount of direct materials purchased and used last period was 900 pounds. The average price paid was $15.00 per pound. What is the overall Direct Material Variance? Show your diagram here if you decide to use one.b. What is the Direct Materials Price Variance?c. What is the Direct Materials Quantity Variance?d. The actual direct labor costs last period were $25.00 per hour. Sammy assumed that by paying the workers more than the standard, the workers? higher efficiency would make up for the higher costs. Last period the Direct Labor Efficiency Variance was $14,000 (F). How many direct labor hours were actually used last period? Show your diagram here if you use onee. What is the Direct Labor Wage Variance?f. What is the overall Direct Labor Variance?g. What was the budgeted amount of Variable Overhead?h. The actual variable overhead costs were $70,000. What was the VARIABLE OVERHEAD SPENDING VARIANCE? Make sure to clearly indicate your answer !!


Paper#43457 | Written in 18-Jul-2015

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